Zimmer Biomet Holdings, Inc. (ZBH, Financial)
A resurgence in COVID cases led to a slowdown in surgeries. However, Zimmer remains the leader in large joint procedures. Their business is very sticky as surgeons stay with the original provider for 5-15 years on roughly 95% of all operations. They continue to innovate with smart technology like Persona IQ which provides data to the patient on their implant with details such as distance walked, range of motion and number of steps. Ten thousand people are turning 65 every day. The obesity rate is now 42% and growing. These are positive fundamental tailwinds for hip and knee replacements, which tend to take place at an average age of 68.
From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management fall 2021 market commentary.
